case from : ACCOUNTING FRAUD WORLDCOM
There will be a (7) seven page report,excluding figures, tables, appendices, and references,required for the term paper. The written report must be typed, single sided, and 1.5 lines-spaced. The following items and additional questions that will be provided later in the semester should be discussed in the term paper:
1)Briefly discuss the situation in the case.
2)Do some research on issues of the case and gather additional information if necessary.
3)Analyze the case and identify the problems in the case.
4)Present your recommendations if applicable.
Assignment Questions:
1. What the pressures that lead executives and managers to “cook the books”?
2. What is the boundary between earnings smoothing or earnings management and fraudulent reporting?
3. Why were the actions taken by WorldCom managers not detected earlier? What processes or systems should be in place to prevent or detect quickly the types of actions that occurred in WorldCom?
4. Were the external auditors and board of directors blameworthy in this case?
Why or why not?
5. Betty Vinson: victim or villain? Should criminal fraud charges have been brought against her? How should employees react when ordered by their employee to do something they do not believe in or feel uncomfortable doing?
1 answer
1 answer